This Resource Paper was prepared by the Business and Biodiversity Offsets Programme (BBOP) to help developers, conservation groups, communities, governments and financial institutions that wish to consider and develop best practice related to biodiversity offsets. It provides information on stakeholder identification, engagement and participation in the design and implementation of biodiversity offsets, considering both the benefits and challenges inherent in an inclusive and participatory approach. It offers a discussion of the principles behind an inclusive and participative approach to the design and implementation of biodiversity offsets, the benefits that such an approach can bring, and the challenges that must be addressed by the project proponent. It covers some of the key issues that a participation process should address, including identifying and involving stakeholders, understanding land rights and resource use practices, introducing sustainable use practices, promoting equity and handling conflict, and ensuring long-term sustainability of the offset. Issues that are still under debate are reviewed, and suggestions and source material are provided to help guide offset planners.